Cryptocurrency and Taxation Challenges

Bitcoin has been the buzz word in the financial space. As of a matter of fact, Bitcoin has exploded the scene in the last few years and many people
Cryptocurrencies have been in the news recently because tax authorities believe they can be used to launder money and evade taxes. Even the Supreme Court appointed a Special Investigating Team on Black Money recommended that trading in such currency be discouraged. While China was reported to have banned some its largest Bitcoin trading operators, countries such as the USA and Canada have laws in place to restrict stock trade in cryptocurrency.
What is Cryptocurrency?
Cryptocurrency, as the name suggests, uses encrypted codes to effect a transaction. These codes are recognized by other computers in the user community. Instead of using paper money, an online ledger is updated by ordinary bookkeeping entries. The buyer's account is debited and the seller's account is credited with such currency.
How are Transactions Made on Cryptocurrency?
When a transaction is initiated by one user, her computer sends out a public cipher or public key that interacts with the private cipher of the person receiving the currency. If the receiver accepts the transaction, the initiating computer attaches a piece of code onto a block of several such encrypted codes that is known to every user in the network. Special users called 'Miners' can attach the extra code to the publicly shared block by solving a cryptographic puzzle and earn more cryptocurrency in the process. Once a miner confirms a transaction, the record in the block cannot be changed or deleted.
BitCoin, for example, can be used on mobile devices as well to enact purchases. All you need do is let the receiver scan a QR code from an app on your smartphone or bring them face to face by utilizing Near Field Communication (NFC). Note that this is very similar to ordinary online wallets such as PayTM or MobiQuick.
Die-hard users swear by BitCoin for its decentralized nature, international acceptance, anonymity, permanence of transactions and data security. Unlike paper currency, no Central Bank controls inflationary pressures on cryptocurrency. Transaction ledgers are stored in a Peer-to-Peer network. That means every computer chips in its computing power and copies of databases are stored on every such node in the network. Banks, on the other hand, store transaction data in central repositories which are in the hands of private individuals hired by the firm.
How Can Cryptocurrency be used for Money Laundering?
The very fact that there is no control over cryptocurrency transactions by Central Banks or tax authorities means that transactions cannot always be tagged to a particular individual. This means that we don't know whether the transactor has obtained the store of value legally or not. The transactee's store is similarly suspect as nobody can tell what consideration was given for the currency received.
What does Indian Law Say about such Virtual Currencies?
Virtual Currencies or cryptocurrencies are commonly seen as pieces of software and hence classify as a good under the Sale of Goods Act, 1930.
Being a good, indirect taxes on their sale or purchase as well as GST on the services provided by Miners would be applicable to them.
There is still quite a bit of confusion about whether cryptocurrencies are valid as currency in India and the RBI, which has authority over clearing and payment systems and pre-paid negotiable instruments, has certainly not authorized buying and selling via this medium of exchange.
Any cryptocurrencies received by a resident in India would thus be governed by the Foreign Exchange Management Act, 1999 as an import of goods into this country.
India has allowed the trading of BitCoins in Special Exchanges with built-in safeguards for tax evasion or money-laundering activities and enforcement of Know Your Customer norms. These exchanges include Zebpay, Unocoin and Coinsecure.
Those investing in BitCoins, for instance, are liable to be charged on dividends received.
Capital gains received due to sale of securities involving Virtual currencies are also liable to be taxed as income and consequent online filing of IT returns.
Should your investments in this currency be large, you are better off obtaining the assistance of a personalised tax service. Online platforms have eased the process of tax compliance by a long way.

Bitcoin has been the buzz word in the financial space. As of a matter of fact, Bitcoin has exploded the scene in the last few years and many people

Secrets to Trading the Forex News and Making More Money in Just a Few Minutes Than You Ever Thought

[ad_1]

One of the reasons that forex trading has grown (and is growing) so popular is because the markets are open 24 hours a day. While an individual country's stock and bond markets are influenced mainly by the economic news of that country, the foreign exchange markets are influenced by the economic news of many countries.

Since the forex markets are open 24 hours a day and since countries release their economic data throughout the day, traders who can only trade at night or early morning can still take advantage of the major market moves that happen around economic news releases.

The main thing you have to consider when trading news is the extreme volatility that occurs. Sometimes a currency pair can move 50 pips in one direction in 2 minutes, and then turn around and move 200 pips in the opposite direction over the next 15 minutes. You, as a news trader, must be willing, able, and capable of handing this extreme volatility while still making money.

There are some keys to trading the news profitably that you must learn and practice in a demo account before you ever try this with real money.

1. You must identify which currency pairs to trade

Since 90% of forex trading involves the U.S. dollar, you definitely want to focus on U.S. news releases. This means you want to trade currencies like the EUR/USD, USD/GBP, AUD/USD, USD/CAD, etc. As a further hint, you want to focus on the currency pair that has the most liquidity (i.e. the ability to get in and out when you want), and that would be the EUR./USD.

2. You need a trading strategy that works and is repeatable

One of the worst ways to trade the news is to enter the market before the news is released or immediately after the release. This is when the newbie and greedy traders trade, and you want to take money from them, not trade with them.

That being the case, you can employ two news trading strategies.

First, straddle the market with entry orders. This means when the market hits your desired price, a trade will automatically be opened. You then cancel the other order. This allows you to get into the market when you want to get in, not when the market lets you in.

Second, you can wait for the volatility to subside and then enter a trade. Sure, you might not make as much money as you would if you got lucky, entered the trade before the news, and the market happened to go your way. But by waiting, you increase your odds of being profitable which, in the long term, will make you much more money.

[ad_2]

Source by Christopher M. Hall

FOREX Trading - Using Economic Reports & News For Profit

[ad_1]

The internet has seen a massive growth in both the quantity of news and speed of delivery and many novice traders think this will help them win, however in most cases it simply helps them lose and lose quickly.

If you are looking at economic reports and news you need to consider one important fact first:

50 Years ago, 90% of FX traders lost and today the figure still remains the same - despite the advances in news forecasting and speed of delivery.

Most novices who watch news reports or trade off economic reports and fail miserably in their FOREX trading.

Why?

Firstly, they don't realize that news is discounted by the market immediately and this is more true than ever today with any news available in any corner of the globe in a split second.

Secondly, if they see a so called expert talking about why a currency should fall it may sound convincing but that doesn't mean the market will go the way they say.

Sure, it's a convincing argument but these guys are giving opinions and are NOT traders.

An economist can always tell you why something has happened in hindsight, but is not so clever about telling you why something will happen.

Investors Determine Price Direction!

The fact is the news is not important in itself - it's how investors perceive the news that's important.

Humans make subjective judgements and all their opinions combined move the market price.

A Better Way To Trade

For most novice traders a better way of trading is to simply follow charts and use technical analysis.

As the marketing is a discounting mechanism you can simply assume all fundamentals will show up in the price instantly.

You can then simply follow the reality, rather than trying to second guess where currencies will go.

You will trade on the reality of price rather than predicting it.

Keeping Emotions Out of Trading

When you hear a convincing argument it's easy to let your emotions get involved and trade with the losing majority.

Technical analysis allows you to set back from the market and see things without emotions and get a clearer perspective.

The fact that the news is bullish or bearish for a currency makes no difference on where it will go.

If you take major currency changes the fact is:

They tend to fall heavily when the fundamentals are most bullish and rally when they are at their most bearish.

Will Rodgers famously said:

"I only believe what I read in the papers"

He was joking of course but many FOREX traders do exactly this - believe what they read and hear and then lose.

Trying to trade off news stories for most traders is a complete waste of time and energy and sees them lose - don't make the same mistake.

[ad_2]

Source by Sacha Tarkovsky

Bitcoin Versus Aristotelian Intrinsic Value

[ad_1]

Invoking Aristotle, Max Keiser published an article arguing that Bitcoin has an intrinsic value in its privacy.[1] According to that article, Bitcoin versus Aristotelian intrinsic value is a match.

Bitcoin Versus Aristotelian Intrinsic Value: A Mismatch

In Aristotle's work, intrinsic value specifies any value an object has independently of being money. So its intrinsic value results from its useful properties as a commodity (rather than as money). However, Bitcoin is useful only as money. Then, apparently Max Keiser's argument would be wrong. For not being useful as a commodity, Bitcoin has no intrinsic value.

Bitcoin Versus Aristotelian Intrinsic Value: A Match

However, there is a situation in which all money becomes a commodity. That situation is its exchange for a different form of money. Whenever bought or sold, money becomes a commodity.

Transacting Versus Transacted Money

For us to buy or sell a monetary object, that object must remain its mere possibility of being money: actual money can only play the active role -- as the buying object -- in any transaction, and never its passive role -- as the bought or sold object. It must be a mere possibility to play this last role. Then, because money always belongs either in an actual or just possible transaction, we must call it when actual or active, transacting money, and when merely possible or passive, transacted money.

As thus, whenever transacted, money becomes a commodity.

So as actual, transacting money, Bitcoin has no intrinsic value. However, as just possible, transacted money, it does have an intrinsic value. This is because, whenever bought or sold, Bitcoin's intrinsic monetary properties become its commodity properties.

Therefore, if Bitcoin became the only currency of the world, its intrinsic value would vanish. With no other currency to buy it and for which to sell itself, Bitcoin no longer could be a commodity. It only could be actual money. Bitcoin's intrinsic value depends on its being able to compete with other currencies (as a transacted, bought or sold commodity).

Privacy as Bitcoin's Intrinsic Value

Still, privacy does not itself constitute an intrinsic value of Bitcoin:

• There is a difference between transaction privacy and public-key privacy.
• There is a difference between exchange value depending on and being itself whichever utilities or properties.

The privacy of Bitcoin transactions depends on Bitcoin's public-key privacy, which is one of its properties. Likewise, its intrinsic value possibly depends on its allowing transaction privacy, which is one of its utilities. Public-key privacy, by making transaction privacy possible, allows us to give Bitcoin its intrinsic value as a bought or sold commodity (for example, in Bitcoin exchanges). Intrinsic value is the exchange value of utilities resulting from intrinsic properties.

Finally, Bitcoin has other properties than public-key privacy, like its ubiquity and security -- both unknown to Aristotle. Those properties also make Bitcoin useful, despite in other ways. It is because of all such utilities -- rather than just because of transaction privacy -- that we can give Bitcoin its monetary value.

Bitcoin's Intrinsic Value

So Bitcoin is possibly a commodity but only when transacted. Only then, its (merely possible) monetary value becomes its intrinsic value.

1. Here is Max Keiser's article: Is Bitcoin Money?

[ad_2]

Source by Mirelo Deugh Ausgam Valis

4 Ways Blockchain Will Disrupt Business As We Know It

[ad_1]

Blockchain technology and cryptocurrencies like Bitcoin generated a lot of news this past year. It seems like every week there's another headline touting an upcoming revolution or downplaying this new technology as a fad with few long term prospects. If you are unfamiliar with blockchain tech, or are still building a point of view, let me make the case for revolution.

Recipe for Disruption

Let's start with why we trust doing business with a company. We trust our largest retailers to fulfill our purchases to deliver goods and services. We trust our banks will ensure our account balance is correct and transfers are verified and free of fraud. The systems these companies have in place build our trust. For example, regulations, anti-fraud systems and services that verify transactions all play a role in ensuring business is conducted above board. Credit card companies are a specific example of a 3rd party that charges a fee on each purchase to verify and settle consumer credit. Overall, each of these parties act as middlemen and provide their services for a fee on each transaction.

The number of transactions in our global economy is mindblowing. World wide retail sales are more than $ 20 trillion USD each year, and gross world product (GWP) is over $ 100 trillion. So enormous numbers of deals and transactions use middlemen and their verification services to run trusted businesses. As the cost of doing business, we accept that these intermediaries extract fees on many trillions of transactions to curb fraud and maintain consumer faith. Those costs creep into the economy, driving up living expenses and the prices for goods and services.

But what would happen if there were cheaper or faster ways to verify deals in our economy? If substitutes existed, the savings would be in the trillions of dollars. For example, online payment gateways earn many billions by adding more than 2.9% on each transaction. There's also the cost of lost time. Middlemen all add days and weeks of delays in real estate, loan approvals or license renewals. Cutting the costs placed on every deal and order in the economy would return incredible profits to businesses and disrupt the way we engage in commerce. Injecting savings in the trillions would kick start growth in the global economy larger than what any one government or company could do on their own.

In comes the blockchain

Blockchain technology is basically a decentralized system for recording trustworthy transactions with no middlemen. Using the power of cryptography, each transaction is irrefutably linked to each other and shared throughout a network of computers. Computers on the network automatically verify the terms of transactions, acting as instant accountants "verifying the books" without any fees. So automatic verification of transactions is the basic feature of blockchain technology.

This is how cryptocurrencies like Bitcoin work too. There are a finite number of coins earned through solving computational puzzles or purchasing them from someone else. Someone with the solution to a puzzle can prove their ownership of a coin because their proof is recorded in the underlying blockchain network. Participants in the network cryptographically verify the identity and the integrity of each other's proofs to guarantee who owns which coins.

The impact of the blockchain concept is clear. Using blockchain technology, businesses could save trillions and deliver services faster. Specifically, they could:

1. Eliminate the costs of proving transactions are legitimate from 3rd party services, saving trillions per year.
2. Enable faster service by instantly verifying the terms of transactions, removing middlemen services like banks, governments and marketplaces.
3. Deliver more securely, using the security built into the blockchain without further investment.
4. Automate more complicated businesses, like insurance services, using programmed " Smart Contracts ".

Adoption of blockchain technology could add trillions of dollars in savings to the global economy. In these early days, some platforms resemble replacements for middleman services, while others are truly decentralized. In any case, with moderate adoption, it will heavily disrupt the way global businesses settle deals each day by giving them a path to remove bloated costs and overhead.

[ad_2]

Source by Jim Baker

Cryptocurrency - Stay Informed

[ad_1]

Cryptocurrencies seem to be the hottest investment products going around. Eavesdrop on any of your friend's conversation, it is about bitcoins. All the workplace chat is also about virtual currencies. The buzzword over online chat rooms is also about cryptocurrency these days. There is a silent economic revolution taking place, thanks to the rising popularity of these virtual currencies.

It goes without saying that if you want to make it big in the world of bitcoins, then you must have a nose for the news. Now, that you have narrowed down your list to a few cryptos, you will have to analyze and decide which ones have the potential to trade higher and faster than the rest. This is the reason why you need to keep tracking the news. You will scan for information on blockchain trends from various sources. These days several business channels devote exclusive time for these trends.

Another potential source of information can be others who are into virtual currencies trade. Get to know a few of them who are very good at trading and pick their brains for valuable information. The internet is a great way to get in touch with such experts. You can find them through online forums. Keep in touch with them regularly. Similarly, you can also subscribe yourself to websites that specialize in cryptocurrency trading. This way you can ensure that you are not missing out on any important news.

Good sources of information on cryptocurrencies can be attained from different organizations. They offer plenty of information about the blockchain ecosystem. The website of this organization offers extremely detailed information on digital currencies.

Keeping your coins safe

Security is another thing that is of crucial importance whenever you are dealing with cryptocurrency. Since you will need to create and use several passwords for different accounts, it is suggested that you use a password manager. Make sure that you use a strong antivirus on your computer. A good firewall is also mandatory in order to ensure the perfect security of your data and online transactions.

Another important thing that you need to follow is to never reveal how much you traded in cryptocurrencies online. This is true both offline as well as online. You must also never make the mistake of clicking on the links of anyone on crypto groups. You could so easily end up downloading a virus on your computer. Most pages on these groups are known to contain viruses.

[ad_2]

Source by Rizvana Manzoor

Important Forex News of 2018

[ad_1]

We all know that news is an important part of our lives. No morning is complete for us without having a glimpse of the newspaper while sipping a hot cup of tea. However, along with all the news of what is happening around, it is good if one is acquainted with what is happening inside the country in the context of business, currency exchange, etc. and how the finances of the country are managed. There are many websites, magazines and even applications for mobile phone where one can read Forex news and know about how foreign exchange brokers are progressing and putting in their strenuous efforts to maintain the financial market of the country effectively. Let us know about some of the latest foreign exchange news, which will give us a deeper view of different countries' financial market, foreign exchange policies and overall financial condition of the country.

China's Central Bank has spent its second largest amount on Forex in the year 2018

Iris Pang, an economist at ING, has confirmed that in the year 2018, the Central Bank of China had spent a whooping amount of 91.58 billion dollars in Forex purchases. This has turned out to be the second largest amount ever spent on foreign exchange currency purchases in the year 2018, while the largest amount ever spent on foreign exchange currency purchases was in September in the same year 2018 and was as high as 119.39 billion dollars.

This is a testimony of the fact that foreign exchange purchases have become an integral part of the finances of various countries and a significantly high part of various countries' budgets goes towards the foreign exchange purchases. Forex brokers are really important in managing the foreign market as they help a lot in the foreign currency exchange.

EUR is expected to trade sideways from now on

Various analysts from UOB have suggested that EUR is expected to trade sideways from now on. The current upward pressure has been alleviated and it is due to this reason that EUR is likely to trade sideways, at least, for now, probably within the broad range of 1.128 to 1.144. It is expected that it may take up to several weeks for EUR to finally break through these levels. Various indicators are almost flat as of now and the recent movement indicates the consolidation phase.

USD falls, GBP on cloud nine

The Pound of the Great Britain is the clear winner in the session that has taken place recently. It stayed at its all time highest for more than a week, staying at 1.29. The EUR is still at 1.14, which has got a slight upgrade due to the Brexit headlines. While GBP soars high as seen before, the dollar of the United States of America is not performing up to the expectations in most parts. It is falling behind its counterparts, except for NZD and AUD.

Such news provide us with a lot of details about the finance and currencies of various countries, don't they?

[ad_2]

Source by Shalini M

What Are All the Things One Should Keep in Mind While Trading Bitcoins?

[ad_1]

Today, in the world of everything digital and done through the internet, people are trading currencies through the web as well. When it comes to the internet, one of the most famous topics of this millennium discussed is cryptocurrencies. With the help of blockchain, these currencies are created and traded and the number of users is simply on the rise. However, like any other trading, bitcoin trading too has their ups and downs and their own set of rules that need to be followed. Trading always carries a large amount of risk, but if one is clever enough and knows how to manage the risks properly, then they can easily be successful at it.

Some of the things that one should keep in mind while trading bitcoins are listed below:

Make a plan

There should be a clear plan about when to start and when to stop. Trading straight ahead without having any plan can be disastrous for profits and loss balance. It is imminent that a target level is decided, when profits should be collected and when to stop to minimize losses. People need to be kept aware of all the pros and cons and about all the trading trends that are happening in the market. Trading daily is not recommended because certain big traders are always out there, waiting to catch the innocent traders make a mistake.

Risk management

People should make use of risk management tools and understand how to spread the risk perfectly through a trading portfolio. This will allow gradual and substantial gains to occur throughout a certain period. Also, they should keep in mind that trading in the high-risk market with an edge can lead to bigger losses. Instead, making smaller profits in a low to moderate risk market can make them good bitcoin traders.

Don't buy all trading news

Many people before trading tend to read the news related to market trends and when and where to trade pieces. Most of the time these pieces can be one-sided and can have a biased opinion. This can lead to bad decisions and complicated knowledge about the bitcoin trading scenario. Instead, people should read about financial markets and how to minimize the risk pieces which can help with trading smarter in the long term.

Identify scams

Just like any other financial industry, bitcoins and other cryptocurrency markets are also filled with scams, where many groups are looking for bitcoins and naïve traders. No one should jump at any situation even if lured with a bigger profit scene. Think before trading because the bitcoins are not insured and if they are lost to a scam, there is no way the situation can be corrected. Always keep an eye out on new investments or a large number of investments which can all be a signal of scamming.

[ad_2]

Source by Shalini M

Understanding Why Bitcoin Is Gaining Popularity in the Binary Options Trading

[ad_1]

Now binary options trading brokers also allow you to fund your accounts by using Bitcoins. Bitcoin is a form of digital money, which defers quite remarkably from the other conventional currencies like the dollar and the pound.

Some of the main highlights of Bitcoins are:

• 
  It uses peer-to-peer technology, and is not controlled by any central authorities. The transactions are carried out collectively among the involved parties and the network, without any intervention from the central banks. It is free from any kind of interferences or manipulations by the governments, since it is totally decentralized.


• 
  It is solely a digital form of currency, and you cannot replace them with their physical form. However, you can quickly exchange them for dollars anytime you like.


• 
  The top cap of issuing Bitcoins is limited to 21 millions, which is an average of just 25 coins being mined for every 10 minutes. The pace of mining has slowed down even more in the last 2 years.


• 
  Bitcoins has limitations in acceptance, because they are not universally accepted at all stores. However, the prospect of acceptance does look better with its growing popularity. This cryptocurrency has come a long way since its introduction in 2009.


• 
  Bitcoins are a bit more complex to understand when compared to the conventional currencies like dollars. Therefore, you will need to gain some technical knowledge about them, especially before using them for online trading


• 
  One of the drawbacks of Bitcoins is that the transactions will generally take around 10 minutes to complete, which is unlike the regular currencies where the transactions can be completed immediately. Also, the transactions are irreversible, and the refunding can be done only if the recipient agrees to do so.


• 
  Bitcoin allows you to make transactions in an anonymous manner, because you will not have to give your name or address. Like mentioned above, it works with the peer-to-peer system.

Before buying Bitcoins, you will need to install the Bitcoin wallet, on your smartphone or computer. In addition to computer and mobile wallets, you can go for the online wallet too. Each wallet will have a specific address code. For each transaction, 2 pair of keys (public and private) will be generated. This encryption system is very secure.

The Bitcoin balance of each account is public, which means anyone can know about the balance of a particular wallet. However, you will still stay anonymous, because you don't have to give your name or private information for doing transactions.

These days many of the Forex and binary options trading brokers has started accepting Bitcoin as one of the currencies. You can buy and sell it against regular currencies like dollars and pounds.

Bitcoins for binary options trading:

The prices on the Bitcoin chart keep changing according to the supply and demand ratio. In addition to trading on the price fluctuations of this cryptocurrency, you can also use it as a mode of payment for purchasing other currencies too.

However, it is very important for you to choose a reliable binary options broker who allows you to use Bitcoins as one of their accepted currencies. You can check out the broker reviews on the rating sites, before choosing the right platforms for binary options trading.

[ad_2]

Source by Mohammed Abdul Nadeem

Bitcoin News And Highlights You Should Know

[ad_1]

While 'bitcoin' is a very commonly heard term, there are few who really know what it is. While it is a trading system, it is the most different from others for two major reasons. For one, it involves a form of digital currency that can be transferred easily. What makes it more unique, however, is the fact that it does not involve any banks or other official financial institutions. It is merely a peer-to-peer system that is independent and unaccountable. Following are some of the most important recent bitcoin news and highlights:

Anonymity - If you want to carry out simple transactions without using your personal identity and bank account details, bitcoins make it possible. All transactions that are carried out are anonymous, unless you choose otherwise, and cannot be tracked back to you. For every transaction, there is an address created that is unique and will never be repeated.

Receiver's privileges - Unlike most other forms of trading, bitcoins are irreversible and you cannot cancel a payment once you have sent it. If you must reverse the transaction, you will need the receiver's consent. Also, the transactions take about 10 minutes to complete, unlike other financial transactions that are processed almost immediately.

Purchasing luxury items - One of the major reasons bitcoins became popular was the fact that they are ideal for purchasing foreign luxury items. These are the ones that are heavily taxed by the governments of these countries, and the final cost becomes very high. Since bitcoins do not involve any governmental institution, there are zero taxes that you have to pay. This, along with the already minimal transaction cost, makes it ideal to use them to purchase items from foreign countries.

Mobile wallet - Among the most popular bitcoin news was the fact that there was a mobile version introduced in addition to a computer version. This means that you can install an application on your smartphone, and manage your bitcoins through it. It also makes it easier to exchange your coins for dollars at any time you like.

Limited acceptance - Despite the growing use of bitcoins, you must check whether or not they are accepted at the store you want to use them at. There are still several places that do not accept them as a valid, usable form of currency. However, this is expected to change soon, with digital currency readily becoming more popular.

[ad_2]

Source by Sheza Naeem